List of the Top Momentum Index Funds in India 2026

Momentum investing is based on the principle that stocks that have outperformed in the recent past tend to continue outperforming in the near term. Momentum index funds offer a systematic, rules-based, and passively managed way to capture this return factor within the Indian equity market. These funds track indices that select and weight stocks based on their price momentum over a defined lookback period. Below is a list of the top momentum index funds in India, along with key details, benefits, risks, and considerations before investing.

Top Momentum Index Funds in India

Here is a list of the top momentum index funds based on their performance and key parameters.

Disclaimer: Please note that the above list of Momentum Index Funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Note: The data on the list of momentum index funds is from 16th April 2026. This data is derived from the Tickertape Mutual Funds Screener.

• Plan: Growth
• Category: Index Fund – Momentum
• AUM: Sorted from highest to lowest

Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

What are Momentum Index Funds?

Momentum index funds are passively managed mutual funds that track indices built on the momentum factor. The momentum factor captures the tendency of stocks with 

strong recent price performance to continue outperforming over subsequent periods. 

These indices select stocks from a broader universe, such as the Nifty 500 or Nifty 200, based on their normalised price returns over a defined lookback period, typically six to twelve months.

In India, the most widely tracked momentum indices include:

• Nifty 200 Momentum 30 Index – selects 30 stocks from the Nifty 200 universe based on normalised momentum score
• Nifty 500 Momentum 50 Index – selects 50 stocks from the Nifty 500 universe based on momentum score
• Nifty Midcap 150 Momentum 50 Index – selects 50 stocks from the Nifty Midcap 150 universe based on momentum score

How Do Momentum Indices Work?

Momentum indices follow a structured, rules-based methodology to identify and weight stocks with strong price momentum. The process typically involves the following steps:

• Universe Selection: The index starts with a parent universe, such as the Nifty 200 or Nifty 500. Stocks that do not meet minimum liquidity or listing requirements are excluded.
• Momentum Score Calculation: Each stock is assigned a momentum score based on its risk-adjusted price return over a lookback period, commonly six months and twelve months, excluding the most recent month to avoid short-term reversal effects.
• Stock Selection: Stocks are ranked by their momentum score, and the top-ranked stocks are selected for inclusion in the index, for example, the top 30 from Nifty 200 or the top 50 from Nifty 500.
• Weighting: Selected stocks are weighted based on a combination of their market capitalisation and momentum score. Individual stock weights are typically capped to limit concentration risk.
• Rebalancing: The index is rebalanced semi-annually. Stocks that no longer meet the momentum criteria are replaced by new entrants with higher momentum scores at the time of review.

Overview of Top Momentum Index Funds

• UTI Nifty200 Momentum 30 Index Fund: This is an open-ended index fund that tracks the Nifty200 Momentum 30 Index. It invests in 30 stocks selected from the Nifty 200 universe based on momentum score, with the aim of delivering returns that closely correspond to the index, subject to tracking error.
• Edelweiss Nifty Midcap150 Momentum 50 Index Fund: This fund tracks the Nifty Midcap 150 Momentum 50 Index and focuses on 50 mid-cap stocks selected on the basis of momentum. It is designed as a passive product, so its objective is to mirror the index before expenses, rather than to actively pick stocks.
• Nippon India Nifty 500 Momentum 50 Index Fund: This is an open-ended index fund that follows the Nifty 500 Momentum 50 Index. It gives exposure to 50 companies selected from the broader Nifty 500 universe based on normalised momentum score, making it a wider-market momentum strategy fund.
• Tata Nifty Midcap 150 Momentum 50 Index Fund: This fund replicates the Nifty Midcap 150 Momentum 50 Index and provides exposure to 50 momentum-based stocks from the mid-cap segment. It is a passive fund structure, so its performance is linked to the index it tracks, subject to tracking error and fund expenses.
• Motilal Oswal Nifty 200 Momentum 30 Index Fund: This is an open-ended index fund that tracks the Nifty 200 Momentum 30 Total Return Index. It invests in 30 stocks from the Nifty 200 universe chosen on the basis of normalised momentum score and follows a passive strategy to stay close to the benchmark.

Taxation on Momentum Index Funds

Momentum index funds are classified as equity mutual funds since they invest predominantly in Indian equities. The taxation on momentum index funds is as follows:

Note: Long-term capital gains up to ₹1.25 lakh in a financial year are exempt from tax. Gains exceeding this threshold are taxed at 12.5% without the benefit of indexation.

How to Invest in Momentum Index Funds?

You can start investing in momentum index funds by following these steps:

• To invest in momentum index funds, you can visit an equity investment platform such as smallcase
• The next step is to research and identify the momentum index fund that aligns with your investment objective, preferred index, and risk appetite. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as tracking error, expense ratio, and fund size.
• Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a SIP plan, and complete the process.

Who Should Invest in Momentum Index Funds?

• Investors Seeking Factor-Based Investing: Momentum index funds are suitable for investors who want exposure to a specific return factor, namely price momentum, within a passive and rules-based framework. They are appropriate for investors who understand the cyclical nature of factor performance and are willing to hold through periods when momentum may underperform.
• Investors with a Long Investment Horizon: The momentum factor can experience sharp reversals during market downturns. Investors with a minimum horizon of five to seven years may be better positioned to benefit from the long-term return premium associated with momentum, while weathering periods of underperformance relative to the broader market.
• Investors Looking to Complement a Core Portfolio: Momentum index funds are typically used as a satellite allocation alongside a core large cap or diversified equity portfolio. They can enhance returns during trending markets and provide diversification across investment styles when combined with other factor or market cap-based funds.
• Investors Comfortable with Higher Portfolio Turnover: Momentum indices rebalance semi-annually, and the composition can change significantly between rebalancing periods. Investors should be comfortable with the dynamic nature of the portfolio and the implications of higher turnover relative to static market-cap-weighted indices.

Benefits of Investing in Momentum Index Funds

• Systematic Capture of the Momentum Factor: Momentum has been one of the most researched and persistent return factors globally and in Indian equity markets. Momentum index funds offer a disciplined, rules-based approach to capturing this factor without relying on active fund manager discretion or subjective stock picking.
• Potential for Higher Returns During Trending Markets: During sustained bull markets or sectoral rallies, momentum indices have historically outperformed market capitalisation-weighted indices by concentrating in the strongest-performing stocks. This can result in significant outperformance relative to broader benchmarks during trending market phases.
• Passive Management at Lower Cost: Despite following a factor-based strategy that would require significant research and conviction in an active setting, momentum index funds are passively managed and carry lower expense ratios than actively managed equity funds. Investors benefit from a smart beta approach at passive fund costs.
• Transparency and Rules-Based Portfolio Construction: The selection and weighting methodology of momentum indices is publicly available and consistently applied. Investors can review the index methodology to understand how the portfolio is constructed and what drives changes during rebalancing.
• Diversification Across High-Momentum Stocks: Momentum index funds hold 30 to 50 stocks selected from a broad parent universe. This ensures the portfolio is diversified across multiple sectors and companies at any point in time, rather than concentrating in a single stock or sector.
• Availability Across Market Cap Segments: Indian investors can access the momentum factor through funds covering different market cap segments, including large and mid cap through the Nifty 200 Momentum 30, broad market through the Nifty 500 Momentum 50, and mid-cap-focused through the Nifty Midcap 150 Momentum 50. This allows investors to tailor momentum exposure to their preferred risk profile.

Risks of Investing in Momentum Index Funds

• Momentum Crashes: The momentum factor is known to experience sharp and sudden reversals, commonly referred to as momentum crashes. These typically occur during market recovery phases following sharp drawdowns, when previously high-momentum stocks underperform, and previously weak stocks rebound strongly. Momentum index funds can suffer significant drawdowns during such reversals.
• Higher Volatility Relative to Broad Market Indices: Because momentum indices concentrate in recent outperformers, they can be more volatile than market-cap-weighted indices during periods of sector rotation, market reversals, or macroeconomic uncertainty. This makes them less suitable for investors with a low risk tolerance or short investment horizon.
• Higher Portfolio Turnover and Tracking Costs: Semi-annual rebalancing involves buying and selling a significant number of stocks. Transaction costs associated with turnover during rebalancing can contribute to tracking error and reduce net returns, particularly for funds with smaller AUM where per-unit transaction costs are higher.
• Concentration Risk During Sector Rallies: Momentum indices can become heavily concentrated in specific sectors that have recently outperformed. If momentum is driven by a narrow sector theme, the portfolio may carry significant sector concentration risk at any given rebalancing period.
• Cyclicality of Factor Performance: No single factor outperforms consistently across all market environments. Momentum has periods of sustained underperformance relative to broad market indices, particularly in sideways or range-bound markets. Investors must be prepared to hold through these cycles without abandoning the strategy.
• Limited Track Record in India: While momentum as a factor has an established academic and global track record, most momentum index funds in India are relatively recent. The live performance history in the Indian context may be limited, making it harder to evaluate true long-term factor behaviour in domestic market conditions.

Factors to Consider Before Investing in Momentum Index Funds

• Index Methodology and Parent Universe: Different momentum indices use different parent universes and stock selection criteria. The Nifty 200 Momentum 30 draws from large and mid-cap stocks, the Nifty 500 Momentum 50 includes small caps as well, and the Nifty Midcap 150 Momentum 50 focuses exclusively on mid-cap stocks. Investors should understand which index the fund tracks and how the momentum score is calculated before investing.
• Rebalancing Frequency and Turnover: Semi-annual rebalancing means the portfolio composition can change significantly twice a year. Investors should be aware that funds tracking momentum indices carry higher portfolio turnover compared to traditional index funds, which has implications for transaction costs and tracking error.
• Tracking Error: Due to the higher turnover involved in rebalancing and the liquidity constraints of some constituent stocks, tracking error in momentum index funds can be higher than in plain vanilla large-cap index funds. Comparing tracking error across funds tracking the same momentum index helps identify more accurate replicators.
• Expense Ratio: While momentum index funds are passively managed, their expense ratios may be slightly higher than simple large-cap index funds due to rebalancing costs. Investors should compare expense ratios across funds tracking the same index, as even small differences compound over time.
• Current Sector Concentration: Before investing, review the current portfolio composition of the fund to understand which sectors are most heavily represented. If the momentum index is highly concentrated in a single sector, assess whether that sector risk is something you are comfortable taking on at the point of entry.

Conclusion

Momentum index funds offer Indian investors a systematic, passive, and cost-efficient route to capturing the momentum return factor within domestic equity markets. They track rules-based indices that select high-momentum stocks from parent universes such as the Nifty 200, Nifty 500, or Nifty Midcap 150, and rebalance semi-annually to maintain exposure to the strongest recent performers.

However, momentum is a cyclical factor that can experience sharp reversals, particularly during market recovery phases. These funds carry higher portfolio turnover, potential sector concentration, and greater volatility compared to traditional market-cap-weighted index funds. They are best suited for investors with a long investment horizon who can remain committed through periods of factor underperformance.

To analyse momentum index funds in detail, use the Tickertape Mutual Fund Screener, which provides 50+ filters. You can compare funds based on returns, risk metrics, expense ratio, tracking error, portfolio allocation, and consistency using pre-built filters for structured evaluation.

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Frequently Asked Questions on Momentum Index Funds in India